{"id":243366,"date":"2021-02-05T10:13:44","date_gmt":"2021-02-05T04:43:44","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=243366"},"modified":"2021-02-05T17:09:14","modified_gmt":"2021-02-05T11:39:14","slug":"del-hc-how-the-limitation-period-for-filing-s-138-ni-act-complaints-is-to-be-calculated-what-is-the-effect-of-not-filing-s-142b-application-explained","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2021\/02\/05\/del-hc-how-the-limitation-period-for-filing-s-138-ni-act-complaints-is-to-be-calculated-what-is-the-effect-of-not-filing-s-142b-application-explained\/","title":{"rendered":"Del HC | How the limitation period for filing S. 138 NI Act complaints is to be calculated? What is  the effect of not filing S. 142(1)(b) proviso application? Explained"},"content":{"rendered":"<p style=\"text-align: justify;\"><strong>Delhi High Court: <\/strong>Suresh Kumar Kait, J., reversed the order of the lower court issuing summons against the accused in a case under Section 138 of the Negotiable Instruments Act, holding that the lower courts fell in error while computing the period of limitation.<\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #008080;\"><strong><u>Factual Matrix<\/u><\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">Petitioner had borrowed a sum of Rs 10 Lacs from respondent 2 who had lent the same vide two cheques amounting to Rs 5 lacs each. Further, it was stated that after approximately 3 years, respondent 2 approached petitioner for repayment of the loan amount, petitioner assured that he will return the entire amount and in order to discharge his part liability he issued a cheque amounting to Rs 10 lacs, which was dishonored with remarks \u201cfunds insufficient\u201d.<\/p>\n<p style=\"text-align: justify;\">Complainant stated that when the above-said was informed to the petitioner, he paid no heed to his complaint and thereafter, a legal demand notice was served upon him, yet petitioner failed to make payment, therefore a complaint was filed under Section 138 NI Act.<\/p>\n<p style=\"text-align: justify;\">In view of the above complaint, summons were directed to be issued against the petitioner.<\/p>\n<p style=\"text-align: justify;\">The above Order was challenged and the revisional court dismissed the said petition which has been challenged.<\/p>\n<h3 style=\"text-align: justify;\"><span style=\"color: #008080;\"><strong><u>Contentions<\/u><\/strong><\/span><\/h3>\n<p style=\"text-align: justify;\">Petitioners Counsel submitted that the Metropolitan Magistrate had no jurisdiction to take cognizance under Section 138 NI Act without that being accompanied by application under Section 142 (1) (b) NI Act for condoning the delay in filing the complaint.<\/p>\n<p style=\"text-align: justify;\">Further, while taking cognizance of the complaint, Metropolitan Magistrate did not take note of the fact that the complaint was filed beyond the limitation period and did not rightly calculate the days and therefore, directed to issue summons to the petitioner was illegal and without jurisdiction.<\/p>\n<h3 style=\"text-align: justify;\"><span style=\"color: #008080;\"><strong><u>Analysis and Decision<\/u><\/strong><\/span><\/h3>\n<p style=\"text-align: justify;\">Bench referred to the decision of Supreme Court in <em>Econ Antri Ltd. v. Rom Industries Ltd., <\/em><a href=\"http:\/\/www.scconline.com\/DocumentLink\/SJp9ly48\">(2014) 11 SCC 769<\/a>, while deciding the issue of calculation of limitation period with regard to proviso (c) to Sections 138 and 142(b) of the NI Act.<\/p>\n<p style=\"text-align: justify;\">Further, the Court added that the ratio of the decision in <em>Saketh India Ltd. v. India Securities Limited, <\/em><a href=\"http:\/\/www.scconline.com\/DocumentLink\/3zmiA675\">(1999) 3 SCC 1<\/a> has to be applied to the case in hand.<\/p>\n<p style=\"text-align: justify;\">Crux in the instant case was that the 15 days period with regard to legal demand notice lapsed. In terms of Supreme Court decision in <em>Saketh India Ltd. v. India Securities Limited,\u00a0<\/em> <a href=\"http:\/\/www.scconline.com\/DocumentLink\/3zmiA675\">(1999) 3 SCC 1<\/a> one day has to be excluded for counting the one month limitation period and therefore, excluding the day of 19-06-2019, the limitation period started from 20-06-2019 and the limitation period expired with the day in the succeeding month immediately preceding the day corresponding to the date upon which the period started.<\/p>\n<p style=\"text-align: justify;\">Consequently, the limitation period in this case, which commenced on 20-06-2019, expired in the succeeding month on a day preceding the date of commencement i.e. 19-07-2019. Admittedly, the complaint, in this case, was instituted on 20-07-2019 i.e. 01 day after the limitation period had expired.<\/p>\n<p style=\"text-align: justify;\">Hence, Bench held that both the courts below have fallen in error while computing the period of limitation. Moreover, at the time of filing, the complaint was not even accompanied by an application under Section 142(1) (b) NI Act for condoning the delay.<\/p>\n<p style=\"text-align: justify;\">Adding to the above, Court stated that the Revisional Court erroneously took into consideration two different dates for service of demand notice while computing the limitation period.<\/p>\n<p style=\"text-align: justify;\">Therefore, the lower courts orders were set aside. [Simranpal Singh Suri v. State,\u00a0 <a href=\"http:\/\/www.scconline.com\/DocumentLink\/r0nPNLPR\"><b>2021 SCC OnLine Del 236<\/b><\/a>, decided on 01-02-2021]<\/p>\n<hr \/>\n<p style=\"text-align: justify;\"><strong>Advocates for the parties:<\/strong><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #008000;\">Petitioner: M.S. Oberoi, Siddharth Khattar and Gaurav Rohilla, Advocates<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #008000;\">Respondents: Izhar Ahmed, Additional Public Prosecutor for respondent 1<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #008000;\">Anil Kumar Dhupar, Advocate for respondent 2<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Delhi High Court: Suresh Kumar Kait, J., reversed the order of the lower court issuing summons against the accused in a case <\/p>\n","protected":false},"author":8808,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3,10],"tags":[31324,45057,11801,29785,32057,23584,44017,27494],"class_list":["post-243366","post","type-post","status-publish","format-standard","hentry","category-casebriefs","category-highcourts","tag-delhi","tag-dishonour-cheque","tag-high-court","tag-law","tag-limitation-period","tag-section-138-ni-act","tag-section-142-ni-act","tag-summons"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.4 (Yoast SEO v26.4) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Del HC | How the limitation period for filing S. 138 NI Act complaints is to be calculated? 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The petitioner represented by Ehraz Zafar, Akash Tyagi and\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":262982,"url":"https:\/\/www.scconline.com\/blog\/post\/2022\/03\/03\/to-prove-that-cheque-amount-was-larger-than-debt-due-can-defence-of-issuer-be-looked-at-stage-of-issuing-summons\/","url_meta":{"origin":243366,"position":1},"title":"To prove that cheque amount was larger than debt due, can defence of Issuer be looked at stage of issuing summons? Del HC explains","author":"Bhumika Indulia","date":"March 3, 2022","format":false,"excerpt":"Delhi High Court: While addressing a matter revolving around Section 138 of the Negotiable Instruments Act, 1881, Subramonium Prasad, J., held that Courts should primarily proceed on the averments in the complaint, and the defence of the accused cannot be looked at the stage of issuing summons unless it can\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/01\/Delhi_New-logo.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/01\/Delhi_New-logo.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/01\/Delhi_New-logo.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/01\/Delhi_New-logo.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/01\/Delhi_New-logo.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":236389,"url":"https:\/\/www.scconline.com\/blog\/post\/2020\/09\/28\/del-hc-can-a-director-who-has-resigned-from-company-be-held-liable-for-cheques-subsequently-issued-and-dishonoured-hc-explains-in-light-of-s-141-ni-act\/","url_meta":{"origin":243366,"position":2},"title":"Del HC | Can a director who has resigned from company be held liable for cheques subsequently issued and dishonoured? HC explains in light of S. 141 NI Act","author":"Bhumika Indulia","date":"September 28, 2020","format":false,"excerpt":"Delhi High Court: V. Kameswar Rao, J., while addressing the present matter observed that a retired director of the company cannot be held liable for the day to day acts of company and cheques issued and dishonoured post his retirement. Petitioner's Counsel V.M. Kannan contended that the proceedings by respondent\u2026","rel":"","context":"In &quot;Banking and Negotiable Instruments&quot;","block_context":{"text":"Banking and Negotiable Instruments","link":"https:\/\/www.scconline.com\/blog\/post\/category\/banking-and-negotiable-instruments\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":316243,"url":"https:\/\/www.scconline.com\/blog\/post\/2024\/03\/06\/complaint-for-dishonour-of-cheque-filed-within-one-month-date-cause-of-action-arose-allahabad-hc-upholds-summoning-order\/","url_meta":{"origin":243366,"position":3},"title":"Complaint for dishonour of cheque to be filed within one month from the date on which cause of action arose: Allahabad HC upholds summoning order","author":"Apoorva","date":"March 6, 2024","format":false,"excerpt":"Allahabad High Court said that the petitioner had 15 days' period to make the payment from the date of receipt of notice, on 08-01-2020, and the said period expired on 23-01-2020. Therefore, the cause of action for filing the complaint arose on 23-01-2020, as per clause (c) of the proviso\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"Allahabad High Court","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/02\/Allahabad-High-Court.webp?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/02\/Allahabad-High-Court.webp?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/02\/Allahabad-High-Court.webp?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/02\/Allahabad-High-Court.webp?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":287047,"url":"https:\/\/www.scconline.com\/blog\/post\/2023\/03\/16\/delhi-high-court-considers-applicability-of-section-219-crpc-in-checque-bounce-cases-issues-notice-to-nctd-legal-news-legal-research-updates\/","url_meta":{"origin":243366,"position":4},"title":"Delhi High Court considers multiplicity of cheque bounce cases vis-a-vis Section 219 CrPC; issues notice to NCTD","author":"Editor","date":"March 16, 2023","format":false,"excerpt":"It was alleged that each alleged \u2018dishonour\u2019 comprised of a separate offence and even if committed on the same date (i.e., within the same year), not more than 03 such offences can be tried by way of a single complaint in view of section 219 Cr.P.C. There is no legal\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"Delhi High Court","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/02\/MicrosoftTeams-image-472.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/02\/MicrosoftTeams-image-472.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/02\/MicrosoftTeams-image-472.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/02\/MicrosoftTeams-image-472.png?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":245382,"url":"https:\/\/www.scconline.com\/blog\/post\/2021\/03\/11\/section-138-ni-act-3\/","url_meta":{"origin":243366,"position":5},"title":"Del HC | Vicarious liability under S. 138 NI Act. What is proper stage of raising defence of absence of knowledge  by the accused being held vicariously liable for offence committed by company? Explained","author":"Bhumika Indulia","date":"March 11, 2021","format":false,"excerpt":"Delhi High Court: Rajnish Bhatnagar, J., held that: \u201cOnce a cheque is issued by a person, it must be honored and if it is not honoured, the person is given an opportunity to pay the cheque amount by issuance of a notice and if he still does not pay, he\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/243366","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/users\/8808"}],"replies":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/comments?post=243366"}],"version-history":[{"count":0,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/243366\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media?parent=243366"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/categories?post=243366"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/tags?post=243366"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}